Critics Wary of Tax Credit for Historic Preservation `We'll Be Watching It Very Carefully,' Carnahan Says

Article excerpt

Before it is even on the books, some officials are worried that
a historic preservation tax credit could strain the state's budget.

A bill passed by the Legislature on Friday authorizes tax
credits equal to 25 percent of the costs of rehabilitating historic
buildings. A last-minute change said developers "shall" be entitled
to the credits if their projects meet federal criteria. Earlier
wording gave state agencies discretion in handing out the credits.

Sen. John Scott, D-St. Louis, sponsored the change. He said
developers must jump through many hoops to qualify, including
getting their structure on the National Register of Historic Places
or certified as contributing to a district's historic significance.
"If you go to all these agencies, hiring architects and
engineers, by God you ought to get the credit," Scott said.
Sen. Wayne Goode, D-Normandy, favors the program but says the
cost should have been capped at about $20 million a year. The way
the bill is written, "it's an entitlement, and if we have requests
for $100 million, we're going to have to pay for it," he said.
Gov. Mel Carnahan said he, too, would have preferred the state
have more control over the purse strings.
"We'll be watching it very carefully," Carnahan said. "As good
as this program is, we cannot let it be a raid on our budget."
St. Louis business leaders lobbied hard for the tax credits,
which could spark investment in abandoned structures downtown.
For instance, developers proposing convention center hotels
could use the tax credit program, said Richard C.D. Fleming,
president of the St. Louis Regional Commerce & Growth Association.
The long-vacant Gateway Hotel and the 24-story Lennox apartment
tower, which is also vacant, could qualify, he said.
Other structures that have been mentioned as likely candidates
for the credit include the Chase Hotel in the Central West End and
the Mark Twain Hotel at 205 North Ninth Street. Plans for the Chase
include a luxury apartment building and commercial complex. The
90-year-old Mark Twain Hotel is being renovated as a low-cost hotel
for people who work downtown. …